Amazon dropped clues that the Kindle Fire was snapped up by consumers last
quarter in a sign the device could put pressure on the runaway success of
Apple's iPad.

Sales at Amazon's media business, which includes content that consumers can buy through the Kindle Fire device, jumped 19pc in the first quarter, the company said on Thursday. Although the world's biggest online retailer does not disclose sales figures for specific devices, analysts said the increase in sales at its media business suggested that Kindle Fire is proving popular with consumers.

Analysts said it also echoed other evidence of the popularity of the Kindle Fire, which Amazon chief executive Jeff Bezos launched in November as a direct competitor to the iPad. Amazon would only say that the Kindle Fire, which is more than $200 cheaper than the iPad, was the bestselling item on its own website.

Kindle Fire has already grabbed a signifcant share of the market for tablets that run on Google's Andriod software. Its market share climbed to 54.5pc in February from 29.4pc in December, according to data from research firm comScore. The iPad, which runs on its own operating system, remains the clear overall market leader.

The increase in sales at Amazon's media division contributed to a 34pc rise in Amazon's overall revenues to $13.2bn (£8.5bn) in the first quarter, beating Wall Street's expectations. The stronger sales numbers also overshadowed a 35pc drop in Amazon's profits to $130m in the quarter as the company stepped up its spending. Analysts have been concerned about the money that Mr Bezos, who founded Amazon, has been ploughing into the Kindle devices as well as the company's warehouses.

Signs that the Kindle Fire helped reassure investors on Thursday. Shares in the company, which closed at $195.99 in regular trading, surged more than 10pc in after-hours trading in New York.